Get All Access for $5/mo

Majority of Global Merchants Fall Short on Card Data Security Compliance As much as 80 percent failed interim tests, a new report says.

By Reuters

This story originally appeared on Reuters

Monica Dipres

Four out of five global retailers and other merchants failed interim tests to determine whether they are in compliance with payment card data security standards, putting them at increased risk of cyberattacks, according to a new report by Verizon Communications Inc.

Businesses must be vigilant in maintaining security to remain compliant with the Payment Card Industry Data Security Standard (PCI DSS), required by payment card issuers. Most of the companies have a tendency to run upgrades of security software and hardware only when they approach an annual compliance check, according to Verizon.

The report, which gathered data in 30 countries by assessing more than 5,000 merchants including retailers, financial institutions and hospitality firms among others, found only 20 percent of those tested to be fully compliant less than a year after installing security safeguards.

From 2013-2014, overall compliance went up by 18 percentage points for 11 out of the 12 payment data security standards.

The report acknowledged the standards are only a baseline, an industry-wide minimal acceptable standard. The volume and scale of breaches in the past 12 months have shown that this is not stopping attackers, Verizon said.

However, out of all the data breaches in the past 10 years that Verizon studied, not a single company was found to be compliant at the time of the breach.

Credit and debit cards account for two-thirds of purchases by value in the United States. A further $2.17 trillion is spent via electronic methods, such as PayPal and mobile payments — many of which are ultimately backed by card transactions, the report said.

(Reporting by Nandita Bose; Editing by Jim Finkle and Ken Wills)

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Side Hustle

This Mom Started a Side Hustle on Facebook — Now It Averages $14,000 a Month and She Can 'Work From a Resort in the Maldives'

Heather Freeman was searching for a way to make some extra cash — and her cousin gave her a great idea.

Starting a Business

He Turned His High School Science Fair Project Into a Product That Solves a $390 Billion Problem: 'This Has Not Been Done Before'

Vasya Tremsin was just 18 years old when he came up with the idea for outdoor fire sensor company Torch Sensors.

Business News

Melinda French Gates Says This Mindset Hack Helped Her Overcome Imposter Syndrome

Melinda French Gates said she faced (and conquered) imposter syndrome while working at the Bill and Melinda Gates Foundation. Here's how.

Business News

Why Does Taylor Swift Keep Stopping Her Shows Mid-Song? It's Actually a Great Lesson in Leadership.

Taylor Swift has paused nearly half of her shows while on the European leg of her Eras tour, and the reason is something leaders can learn from.

Side Hustle

This 26-Year-Old's Side Hustle That 'Anybody Can Do' Grew to Earn $170,000 a Month. Here's What Happened When I Tested It.

Stephen Alvarez was working at a dental supply company and following his passion for cars on the side — then an Instagram ad changed everything.